In this article, we will take a look at some of the best global dividend stocks to invest in.
Dividend stocks are back in focus, and not just in the US, but investors around the world are leaning into income again, and the data shows why. According to a report from Janus Henderson, global dividends reached a record $1.75 trillion in 2024. That represents 6.6% underlying growth, a solid result by any measure. Headline growth came in at 5.2%, held back mainly by fewer special dividends and a stronger US dollar.
The strength was broad rather than concentrated in a few markets. The report stated that 17 of the 49 countries tracked paid record dividends, including major contributors such as the US, Canada, France, Japan, and China. At the company level, the picture was just as encouraging. About 88% of firms worldwide either increased their payouts or held them steady during the year. For long-term investors, that kind of consistency tends to matter more than short-term spikes.
The UK tells a similar story, though with a slower recovery. Dividend growth stalled after 2022, but expectations are improving. AJ Bell data showed that analysts now believe 2026 could deliver a record £86 billion in FTSE 100 dividends. Forecasts for 2025 have also edged higher, with expected payouts of £80.7 billion, up from £79.4 billion just a few months ago.
Those numbers translate into attractive yields. The FTSE 100 is expected to offer a forward dividend yield of about 3.2% in 2025 and 3.4% in 2026. That is after a strong run for the index this year and still sits above the S&P 500’s dividend yield.
Given this, we will take a look at some of the best dividend stocks globally.
Our Methodology:
For this article, we scanned the holdings of the Vanguard International High Dividend Yield ETF, which tracks the performance of the FTSE All-World ex US High Dividend Yield Index. From the ETF, we identified global dividend stocks traded on American exchanges, with dividend yields abover 3%, as of the close of December 27. From that list, we picked companies that were most popular among hedge funds, as per Insider Monkey’s database of Q3 2025, and ranked them accordingly.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
15. Pembina Pipeline Corporation (NYSE:PBA)
Number of Hedge Fund Holders: 17
Dividend Yield as of December 27: 5.47%
Pembina Pipeline Corporation (NYSE:PBA) is among the best dividend stocks to invest in.
On December 16, BMO Capital analyst Ben Pham lowered the firm’s price target on Pembina Pipeline Corporation (NYSE:PBA) to C$58 from C$59 and kept an Outperform rating on the shares.
Pembina pays a quarterly dividend and offers an annualized yield of about 5.5%. That steady income stream still matters to investors who rely on cash returns. Its contract-based infrastructure model also helps. These assets tend to perform more consistently when markets feel unsettled.
In the third quarter of 2025, Pembina Pipeline Corporation (NYSE:PBA) reported adjusted EBITDA of $1.03 billion. That represented a modest year-over-year increase. Higher contracted volumes helped, along with inflation-linked toll adjustments on key systems like the Peace Pipeline. Pipeline utilization improved as demand strengthened.
Facilities operations added to the results as well. Natural gas processing volumes rose, particularly in the Duvernay region. What stood out most was cash flow. Adjusted cash flow from operating activities reached $648 million in the quarter. That more than covered dividend payments. For investors focused on dividends, this kind of coverage matters. Especially at a time when dividend growth across the market is slowing or being put on hold.
Pembina Pipeline Corporation (NYSE:PBA) operates one of the largest energy transportation and midstream networks in Canada. Its assets move crude oil, natural gas, and natural gas liquids through pipelines, processing facilities, and export infrastructure.
14. NatWest Group plc (NYSE:NWG)
Number of Hedge Fund Holders: 18
Dividend Yield as of December 27: 3.67%
NatWest Group plc (NYSE:NWG) is among the best dividend stocks to invest in.
On December 4, Goldman Sachs downgraded NatWest Group plc (NYSE:NWG) to Neutral from Buy. It lifted the price target to 685 GBp from 665 GBp. The change came as part of the firm’s 2026 outlook for European banks. Goldman said it remains constructive on the sector. Investor attention is moving away from rates and credit. Growth and efficiency are now taking center stage. Capital deployment still matters most for creating shareholder value.
NatWest Group plc (NYSE:NWG)’s shares tell their own story. The stock is up more than 77% since the start of 2025. The bank’s October 24 Q3 2025 results explain why. The company’s profit before tax jumped 30.4% year over year to £2.18 billion, and total income rose 15.7% to £4.33 billion. These are strong numbers by any measure.
There is a clear risk. Falling UK interest rates could pressure earnings; however, NatWest has been preparing for this for some time. Management shifted focus toward fee-based businesses rather than relying only on interest income. That decision is starting to show results. In Q3 2025, non-interest income climbed 25.9% to £0.91 billion. Net interest income grew 12.7% to £3.09 billion, a slower but still solid pace. Net interest income reflects the gap between what banks earn on loans and what they pay on deposits.
NatWest Group plc (NYSE:NWG) has also leaned into structural hedges. These tools are complex but effective. They help protect lending margins when central banks cut rates. Many banks use similar hedges, but NatWest appears to have gone further. Its position extends into 2027, longer than most peers. That gives it more time to benefit from today’s rate environment. If this plays out as planned, the bank could deliver industry-leading margins. Returns on tangible equity may continue to improve.
NatWest Group plc (NYSE:NWG) serves more than 20 million customers. Its operations span retail, commercial, and private banking across the UK.
13. Bank of Montreal (NYSE:BMO)
Number of Hedge Fund Holders: 18
Dividend Yield as of December 27: 3.66%
Bank of Montreal (NYSE:BMO) is among the best dividend stocks to invest in.
On December 5, TD Securities raised its price target on Bank of Montreal (NYSE:BMO) to C$184 from C$182 and kept a Hold rating on the shares.
Bank of Montreal reported higher fourth-quarter profit, driven largely by a rebound in dealmaking and stronger equity markets. Its capital markets unit benefited the most from this shift. Strong crude oil exports and increased government spending helped Canada avoid the worst effects of US President Donald Trump’s tariff policy. Those tariffs continue to weigh on sectors such as steel and aluminum, but the broader economy has shown resilience.
Loan growth remains under pressure as uncertainty tied to US trade policy lingers. That has pushed Canada’s largest banks, including BMO, to lean more heavily on fee-based businesses to support growth. Profit at Bank of Montreal (NYSE:BMO)’s capital markets unit more than doubled to C$521 million, up from C$251 million a year earlier. Higher revenue from global market activity, along with stronger investment and corporate banking results, drove the increase.
Provision for credit losses fell to C$755 million from C$1.52 billion last year. That decline points to improved confidence in credit quality.
Separately, Bloomberg reported that Steve Thom will retire as head of global credit trading at Bank of Montreal (NYSE:BMO), according to people familiar with the matter. Thom joined the bank five years ago as a managing director. BMO has been reshaping its capital markets division through a mix of new appointments and job cuts. The unit generated about C$2 billion in earnings on C$7.5 billion in revenue during fiscal 2025, based on figures from the bank’s annual report.
Bank of Montreal (NYSE:BMO) provides a broad range of personal and business banking services, including deposit accounts, lending products, credit cards, and other financial solutions.
12. HSBC Holdings plc (NYSE:HSBC)
Number of Hedge Fund Holders: 19
Dividend Yield as of December 27: 4.21%
HSBC Holdings plc (NYSE:HSBC) is among the best dividend stocks to invest in.
On December 17, Keefe Bruyette upgraded HSBC Holdings plc (NYSE:HSBC) to Outperform from Market Perform and lifted its price target to 1,240 GBp from 990 GBp. The firm points to HSBC’s continued strength in Hong Kong. Its forecasts now sit ahead of broader market expectations.
That view lines up with recent developments in the region. On December 15, Hong Kong’s Hang Seng Bank said an independent board committee found HSBC Holdings plc (NYSE:HSBC)’s $13.6 billion take-private offer to be fair and reasonable, as reported by Reuters. The committee recommended that minority investors vote in favor of the proposal.
Under the terms, HSBC Holdings plc (NYSE:HSBC) plans to buy the 36.5% stake in Hang Seng that it does not already own. When the deal was announced, chief executive Georges Elhedery told Reuters the move fits HSBC’s broader strategy of selective acquisitions alongside ongoing divestments.
Hang Seng has faced pressure in recent years. Its exposure to Hong Kong and mainland China’s property markets has weighed on performance. That strain may not ease soon. Debt-heavy developers and their lenders are bracing for tougher conditions, with bond maturities expected to rise by nearly 70% next year.
Founded in 1933, Hang Seng remains one of Hong Kong’s largest banks and a core part of the HSBC group. It serves roughly 4 million customers through digital channels and more than 250 branches across the city.
HSBC Holdings plc (NYSE:HSBC), meanwhile, operates on a far broader scale. The group serves over 40 million customers worldwide, ranging from individual savers to multinational companies and governments.
11. National Grid plc (NYSE:NGG)
Number of Hedge Fund Holders: 20
Dividend Yield as of December 27: 4.02%
National Grid plc (NYSE:NGG) is among the best dividend stocks to invest in.
On December 12, Morgan Stanley initiated coverage of National Grid plc (NYSE:NGG) with an Overweight rating and an $85.50 price target.
That call followed an earlier move on December 6, when JPMorgan raised its price target on National Grid to 1,250 GBp from 1,225 GBp and kept an Overweight rating on the shares.
The company’s recent results help explain the confidence. On November 6, National Grid plc (NYSE:NGG) reported first-half adjusted profit that came in slightly ahead of market expectations. Higher UK electricity transmission revenue played a role, along with increased investment across its regulated businesses.
Management has been reshaping the portfolio for some time. Under the then Chief Executive John Pettigrew, the focus has narrowed toward regulated electricity and gas networks. That strategy included selling the US onshore renewables arm and agreeing to divest the Grain LNG terminal.
National Grid plc (NYSE:NGG) also reaffirmed its medium-term outlook. Underlying earnings per share are expected to track its targeted 6% to 8% compounded annual growth rate from the 2024–25 baseline. For the six months ended September 30, the company posted underlying operating profit of £2.29 billion ($3.07 billion). The market had been looking for £2.24 billion.
National Grid plc (NYSE:NGG) runs Britain’s energy systems and also operates electricity and gas businesses in New York and Massachusetts.
10. The Toronto-Dominion Bank (NYSE:TD)
Number of Hedge Fund Holders: 26
Dividend Yield as of December 27: 3.34%
The Toronto-Dominion Bank (NYSE:TD) is one of the best dividend stocks to invest in.
On December 18, National Bank analyst Gabriel Dechaine upgraded The Toronto-Dominion Bank (NYSE:TD) to Outperform from Sector Perform and set a C$134 price target.
A few days earlier, on December 4, the bank announced a 3% increase in its quarterly dividend to C$1.08 per share. That move came even as earnings in the final quarter of fiscal 2025 were weighed down by restructuring costs and other charges. Management is cutting expenses while continuing work to strengthen its anti-money-laundering controls.
The Toronto-Dominion Bank (NYSE:TD)’s earnings climbed, supported by stronger capital markets activity and solid volume growth in Canadian banking. That kind of rebound tends to stand out, especially in a tougher operating backdrop. Like the rest of Canada’s “Big Six” banks, TD kept a capital position well above regulatory minimums. The bank said it expects adjusted earnings per share to grow between 6% and 8% in fiscal 2026. That outlook holds despite ongoing concerns among households and businesses tied to changes in US trade policy and tariffs that have unsettled global trade.
The dividend increase signaled confidence in the bank’s growth and earnings power, according to Raymond Chun. Chun stepped into the president and CEO role earlier this year, following The Toronto-Dominion Bank (NYSE:TD)’s historic settlement with US authorities over weaknesses in its anti-money-laundering controls. That episode led to sizable penalties and a cap on US asset growth, an overhang the bank is now working through.
The Toronto-Dominion Bank (NYSE:TD) offers a broad mix of products and services, including investing, mortgages, everyday banking, and small business solutions, supported by its online banking platform.
9. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 27
Dividend Yield as of December 27: 3.46%
Unilever PLC (NYSE:UL) is among the best dividend stocks to invest in.
On December 15, Morgan Stanley analyst Sarah Simon resumed coverage of Unilever PLC (NYSE:UL) with an Overweight rating and a $60.10 price target. The firm says the company is now levered to “structurally faster growing segments” like beauty, wellness, and personal care. It sees a cleaner, more appealing setup for the stock heading into 2026.
Unilever PLC (NYSE:UL) is putting real money behind that shift. CEO Fernando Fernandez said on December 9 that the company plans to spend about €1.5 billion ($1.74 billion) a year on mergers and acquisitions, with a strong focus on the US market. That signals intent and also reflects where Unilever believes long-term growth is coming from.
The portfolio is already changing. On December 8, Unilever PLC (NYSE:UL) completed the demerger of its ice cream business, now listed in Amsterdam as The Magnum Ice Cream Company. Speaking at a JPMorgan event, Fernandez said Unilever’s second-half operating margin after the split should be at least 19.5%. That compares with 18.5% when ice cream was still included.
Unilever kept a 19.9% stake in Magnum, which began trading with a market value below analyst expectations of roughly $9.1 billion. The debut was weighed down by index funds exiting after the spinoff. Investors received one Magnum share for every five Unilever shares they owned. Management had flagged this risk earlier, noting the stock would not be immediately eligible for major indices such as the FTSE, which added pressure in early trading.
Unilever PLC (NYSE:UL) is a British multinational consumer packaged goods company headquartered in London, England.
8. Royal Bank of Canada (NYSE:RY)
Number of Hedge Fund Holders: 29
Dividend Yield as of December 27: 2.74%
Royal Bank of Canada (NYSE:RY) is one of the best dividend stocks to invest in.
On December 4, Canaccord raised its price target on Royal Bank of Canada (NYSE:RY) to C$236 from C$224 and kept a Buy rating on the shares.
Royal Bank of Canada delivered fourth-quarter earnings that topped analyst estimates. The lift came from capital markets, where activity picked up, and margins held firm. That performance pushed management to raise its return on equity outlook.
Royal Bank of Canada (NYSE:RY) now expects return on equity to exceed 17% in fiscal 2026. That compares with a prior forecast of 16% shared earlier this year. The bank also raised its quarterly dividend by 6%, reinforcing its focus on shareholder returns.
“It is a growth story, (it is) a capital return story through dividends,” CEO Dave McKay said. At the same time, McKay pointed to some caution. The Canadian economy has not fully normalized, and markets remain elevated. Trade talks between Canada and the US have yet to remove tariffs on sectors such as steel and aluminum. Across the sector, Canada’s largest banks have leaned into fee-based, higher-margin businesses as loan growth in personal and commercial banking slows. Economic uncertainty has made borrowers more cautious, and that shows up in lending volumes.
Banks are also watching federal spending plans closely. Increased defense outlays and large infrastructure projects, from pipelines to airports, could support domestic growth. That matters at a time when housing activity remains soft, and unemployment is still elevated. McKay said RBC, supported by a strong capital position, will prioritize organic growth and steady shareholder returns. The bank remains patient on US expansion, waiting for the right moment to pursue M&A or other opportunities in what remains a key long-term market.
7. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 32
Dividend Yield as of December 27: 4.53%
Sanofi (NASDAQ:SNY) is among the best dividend stocks to invest in.
Sanofi said on December 15 that a US regulatory decision for its experimental multiple sclerosis drug will be delayed again. On the same day, the company also disclosed weaker-than-expected results from a late-stage clinical study, adding to a difficult stretch for its research pipeline.
Analysts said the latest setbacks could weigh on confidence in Sanofi (NASDAQ:SNY)’s future drug portfolio. Earlier this year, the company reported weak results from experimental treatments for eczema and smokers’ lungs. That track record has increased pressure on management to find new growth drivers beyond its blockbuster asthma drug Dupixent.
Sanofi said the US Food and Drug Administration decision on tolebrutinib, which is being reviewed for non-relapsing secondary progressive multiple sclerosis, will now come after the December 28 action date. That marks a second delay, after the decision was initially expected in September. The company said it expects additional guidance from the FDA by the end of the first quarter of 2026.
BofA analysts said the delay could reduce the drug’s chances of approval and raise questions around the roughly €1.4 billion in peak annual sales that had been projected for tolebrutinib. Sanofi (NASDAQ:SNY) also reported that the drug failed to slow disability progression in a late-stage trial involving patients with primary progressive multiple sclerosis. This form of the disease accounts for about 10% of cases, according to the company. Analysts described the results as a negative surprise, especially when viewed against recent data from a competing treatment developed by Roche. That rival drug showed a meaningful reduction in the annualised relapse rate compared with another therapy.
Despite the challenges, tolebrutinib received breakthrough therapy designation from the FDA in December 2024 and remains under regulatory review in the European Union. It was also provisionally approved in the United Arab Emirates in July to treat non-relapsing secondary progressive multiple sclerosis and to slow disability accumulation independent of relapse activity in adults.
Sanofi (NASDAQ:SNY) is an R&D-driven, AI-powered biopharma company focused on improving patient outcomes while pursuing sustainable growth.
6. Diageo plc (NYSE:DEO)
Number of Hedge Fund Holders: 34
Dividend Yield as of December 27: 4.80%
Diageo plc (NYSE:DEO) is among the best dividend stocks to invest in.
On December 18, Morgan Stanley lowered its price target on Diageo plc (NYSE:DEO) to 1,530 GBp from 1,595 GBp and kept an Underweight rating on the shares.
A day earlier, Diageo announced a major asset sale as it works to bring down its debt. The company agreed to sell its stake in its Kenyan business to Asahi in a deal valued at $2.3 billion. Management has been clear this year that divestments would play a role in repairing the balance sheet, and this transaction fits that plan.
Under the agreement, Diageo plc (NYSE:DEO) will sell its 65% stake in East African Breweries Limited, or East African Breweries Limited, to Asahi. Diageo will still maintain a presence in the market through a licensing arrangement with EABL, allowing it to keep some commercial ties to the region. The deal values EABL at $4.8bn and is expected to reduce Diageo’s net debt-to-earnings ratio by about 0.25 times. That matters because the company’s leverage is currently above its target range of 2.5 to 3 times.
Asahi will pay close to $3 billion for the transaction. This includes $2.35 billion for Diageo plc (NYSE:DEO)’s full stake in Diageo Kenya and $646 million for a 53.8% stake in UDVK, the group’s local distilling unit. Together, those holdings represent Diageo’s 65% interest in EABL. After taxes and deal-related costs, Diageo expects to receive $2.3 billion in cash.
Earlier this year, interim chief executive Nik Jhangiani said the company was planning significant divestments to ease pressure on the balance sheet. Diageo has been dealing with weaker alcohol demand and the impact of US President Donald Trump’s trade tariffs, both of which have weighed on performance.
Diageo plc (NYSE:DEO) produces and distributes a wide range of alcoholic beverages, with brands that include Johnnie Walker, Crown Royal, J&B, Buchanan’s, and Windsor.
5. Manulife Financial Corporation (NYSE:MFC)
Number of Hedge Fund Holders: 34
Dividend Yield as of December 27: 3.43%
Manulife Financial Corporation (NYSE:MFC) is among the best dividend stocks to invest in.
On December 15, Morgan Stanley raised its price target on Manulife Financial Corporation (NYSE:MFC) to $51 from $50 and maintained an Equal Weight rating on the shares. The analyst pointed to lower interest rates and a steady, or improving, equity market as supportive macro conditions. Looking ahead, 2026 should see “similar fundamental trends as 2025,” according to the firm’s life insurance group outlook.
The stock is already reflecting some of that optimism. Shares are up nearly 20% since the start of 2025. In November, Manulife laid out a refreshed strategy focused on Asia, aiming to gain market share in large economies and broaden its business mix during a period of global uncertainty.
Capital flexibility has played a role in that shift. Since 2023, Manulife Financial Corporation (NYSE:MFC) has used reinsurance deals to transfer risk and free up capital. That has opened the door for share buybacks and new investments. One priority is India, where the company plans to grow through a joint venture with Mahindra and Mahindra. In September, Manulife also agreed to acquire Schroders’ business in Indonesia, strengthening its footprint in Southeast Asia.
The Asia segment is already showing momentum. Core earnings from the region rose 29% to $550 million in the third quarter compared with the same period last year. That growth helped lift overall results. For the three months ended September 30, Manulife Financial Corporation (NYSE:MFC) reported core earnings of C$2.04 billion, or C$1.16 per share. A year earlier, core earnings totaled C$1.83 billion, or C$1.00 per share.
Manulife Financial Corporation (NYSE:MFC) operates as a global financial services company, providing insurance, wealth management, and investment solutions across multiple markets.
4. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 37
Dividend Yield as of December 27: 3.54%
Nutrien Ltd. (NYSE:NTR) is among the best dividend stocks to invest in.
On December 18, Mizuho raised its price target on Nutrien Ltd. (NYSE:NTR) to $65 from $61 and kept a Neutral rating. The move came as part of the firm’s 2026 outlook for the chemicals, agriculture, and packaging sector. The analyst said China’s higher export volumes are weighing on most basic chemical markets. Mizuho also expects the March quarter to start off as weak as the December quarter ended for many companies across the group.
Earlier in the month, Nutrien Ltd. (NYSE:NTR) took a clear step to streamline its portfolio. On December 10, the company said it completed the sale of its 50% equity stake in Argentina-based nitrogen producer Profertil S.A. The buyer group included Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda, which acquired the business through a joint transaction. Nutrien said total pre-tax proceeds from the sale were about $600 million.
That deal adds to a broader divestment push. With the Profertil transaction now closed, Nutrien Ltd. (NYSE:NTR) has generated roughly $900 million in gross proceeds from asset sales since the fourth quarter of 2024. Management has framed these moves as a way to sharpen focus and strengthen the balance sheet in a softer operating environment.
Ken Seitz, Nutrien’s President and CEO, made the following comment:
“Closing the sale of our equity stake in Profertil demonstrates continued progress towards simplifying our portfolio, enhancing earnings quality, and improving cash conversion. We intend to allocate the proceeds towards capital allocation priorities that support our ability to grow free cash flow per share over the long term, including targeted growth investments, share repurchases and debt reduction.”
Nutrien Ltd. (NYSE:NTR) operates as a global supplier of essential crop nutrients, producing and distributing potash, nitrogen, and phosphate. The company also supports farmers through its large retail platform, Nutrien Ag Solutions, which provides products, services, and agronomic expertise across key agricultural regions.
3. Cenovus Energy Inc. (NYSE:CVE)
Number of Hedge Fund Holders: 38
Dividend Yield as of December 27: 3.48%
Cenovus Energy Inc. (NYSE:CVE) is among the best dividend stocks to invest in.
On December 3, TD Securities analyst Menno Hulshof raised the firm’s price target on Cenovus Energy Inc. (NYSE:CVE) to C$29 from C$28 and kept a Buy rating on the shares.
On December 11, the company laid out its 2026 capital budget and updated corporate guidance. Cenovus Energy Inc. (NYSE:CVE) said it expects capital investment to land between $5.0 billion and $5.3 billion in 2026. That figure includes about $350 million tied to turnaround costs, which will be capitalized during the year. Excluding those turnaround items, capital spending is projected at $4.7 billion to $5.0 billion.
Roughly $850 million of that total relates to the recently acquired Christina Lake North asset, formerly MEG’s Christina Lake.
Most of the budget is geared toward maintaining the existing business. Sustaining capital, excluding turnarounds, is expected to range from $3.5 billion to $3.6 billion. Management said this level of spending is designed to support safe and reliable operations while holding base production steady. Beyond that, Cenovus Energy Inc. (NYSE:CVE) plans to direct $1.2 billion to $1.4 billion toward growth projects, including an expansion at Christina Lake North.
The company also outlined plans for its conventional portfolio, expecting to invest between $450 million and $500 million in those assets during 2026, with most of the spending aimed at sustaining production. Total conventional output is forecast at 120,000 to 125,000 BOE per day, with operating costs estimated between $11.00 per BOE and $12.00 per BOE.
Cenovus Energy Inc. (NYSE:CVE) operates as an integrated energy company, with oil and natural gas production in Canada and the Asia Pacific region, alongside upgrading, refining, and marketing operations across Canada and the United States.
2. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 41
Dividend Yield as of December 27: 3.54%
GSK plc (NYSE:GSK) is one of the best dividend stocks to invest in.
On December 10, HSBC analyst Rajesh Kumar raised the firm’s price target on GSK plc (NYSE:GSK) to 1,500 GBp from 1,200 GBp and kept a Reduce rating on the shares. The move came as part of HSBC’s 2026 outlook for the pharmaceutical sector. The firm said the group is positioned to outperform next year, “even more so if AI panic kicks in.”
HSBC added that its preferred names sit in the “growth bucket ideas,” though it noted that “fallen angels and value could work as well.”
A few days later, on December 16, GSK plc (NYSE:GSK) shared an update on the regulatory front. The US Food and Drug Administration approved the company’s add-on treatment for severe asthma, giving patients access to a therapy that requires less frequent dosing. At the same time, the agency declined to approve the drug for another condition.
The decision comes as GSK prepares for a leadership transition. Commercial chief Luke Miels is set to step into the CEO role early next year, at a time when the company is dealing with US tariffs and looking to replenish its pipeline as key patents approach expiry.
The FDA cleared Exdensur as an add-on maintenance treatment for patients aged 12 and older with severe eosinophilic asthma. The approval makes it the first biologic available with a twice-yearly dosing schedule. GSK said the agency did not approve the drug for the treatment of chronic rhinosinusitis with nasal polyps, a long-term inflammatory sinus condition.
In the UK, regulators had already approved the drug, branded as Exdensur, for use as an add-on asthma treatment in patients aged 12 and older. UK authorities also cleared it for chronic rhinosinusitis with nasal polyps in adults, a broader label than what the FDA granted.
GSK plc (NYSE:GSK) operates as a global biopharmaceutical company focused on developing medicines and vaccines, with core strengths in respiratory disease, immunology, and infectious diseases.
1. British American Tobacco p.l.c. (NYSE:BTI)
Number of Hedge Fund Holders: 44
Dividend Yield as of December 27: 5.48%
British American Tobacco p.l.c. (NYSE:BTI) is among the best dividend stocks to invest in.
On December 10, Morgan Stanley analyst Rashad Kawan raised the firm’s price target on British American Tobacco p.l.c. (NYSE:BTI) to 3,050 GBp from 3,000 GBp while keeping an Underweight rating on the shares.
Around the same time, Jefferies took a more constructive stance, naming British American Tobacco p.l.c. (NYSE:BTI) as its top pick in the global tobacco sector. The firm said its view is driven by growing confidence that the company’s shift toward a smoke-free, products-focused portfolio is sustainable and still not fully reflected in the share price.
Jefferies analyst Andrei Andon-Ionita pointed to several factors supporting the investment case. These include accelerating market share gains in the US modern oral segment and early signs of improvement in volumes and pricing in the US. Vuse business, and a solid outlook for combustibles heading into 2026. He also highlighted the company’s strong balance sheet, which is seen as providing room for continued and meaningful cash returns to shareholders.
Andon-Ionita and his team said they are more optimistic than the broader Wall Street consensus on the strength and durability of British American Tobacco’s growth in modern oral products. That view is most pronounced in the US, where Velo Plus has posted more than 300% growth in both volume and value and has emerged as a leading driver of category expansion. The analyst made the following remark:
“We see further upside from innovation and regulatory enforcement in US eVapor, and also highlight the resilience of the Combustibles business, which continues to deliver robust cash flow and margin expansion despite ongoing volume declines.”
British American Tobacco is a multinational group that manufactures and sells cigarettes, tobacco, and a range of other nicotine products across global markets.
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